Alitalia Files for Bankruptcy Protection

Alitalia has applied for bankruptcy protection whilst efforts to restructure the company continue. To this end administators will be appointed to oversee the process

In my previous post on this subject: Alitalia - How long before the life support is switched off?
I wrote:

Alitalia as currently constituted is NOT VIABLE. Without a massive downsizing both terms of routes, fleet, bases and therefore staff. A renegotiation of Ground and Aircrew contracts of the remaining staff, to bring these in line with commercial reality, not custom and practise, is also required, otherwise Alitalia will be forced to cease operations.

What I never expected was that, Roberto Colaninno the man appointed to take charge after the restructuring process would state the situation even plainer terms when talking to a journalist with La Repubblica newspaper:

"No one can buy Alitalia in the state it's in,"

He went onto say:

"With all respect, I am not Merlin the magician. The business is toast. It doesn't exist any more. There's nothing left."

Behind the scenes there has been a tremdous amount of 'deal making' going on with a group of Italy's most powerful families agreeing to a massive investment in a restructured entity. In Addition both Lufthansa and Air France continue to look into a post-structuring stake (which as it wouldn't be a take over any such investment would at least symbolically meet Prime Minister Silvio Berlusconi precondition of any rescue deal that Alitalia's would contine to be Italian owned).

Talks with the Unions have been ongoing, but little has leaked out, except one of the Unions whilst accepting that huge job losses are inevitable wants the employees made redundant, given jobs with other state owned industries.
I suppose this would be progress of a sort, but the Unions really must wake up to simple facts:

• The job losses will be truly massive
• The inefficient customs and practises will have to go
• All worker groups will be affected whether Managers, Aircrew, or Ground Staff

Personally I still think the Unions assisted by certain Managers will cause Alitalia to self-desctruct, or at the very least make the restructured Airline as inefficient as the current incarnation and thus doomed to failure.
As I ended my last post on this subject, I shall end this one:
Alitalia please prove me wrong.

Other Posts on Alitalia in this blog:
13th January 2009:
Alitalia Reborn - But will it Survive?

06th October 2008:
Alitalia - Is the Opera entering its final act?

13th September 2008:
Alitalia - Have the Unions Killed the only hope?

29th July 2008:
Alitalia - How long before the life support is switched off?